Skip to main content

Guild Mortgage Launches New One Percent Down Program

NationalMortgageProfessional.com
May 30, 2017
Guild Mortgage has promoted Doug Jameson and Eric Weiss to regional manager positions to help manage the company’s future growth in five states

Guild Mortgage has launched a new conventional loan program that requires only a one percent downpayment from the homebuyer. Combined with a two percent grant from Guild, the three percent equity results in a loan with a 97 percent loan-to-value (LTV) ratio. The grant does not need to be repaid.
 
“We were able to create this breakthrough national program because we are a direct lender with many decades of strong investor relationships and first-time homebuyer expertise,” said Mary Ann McGarry, president and CEO of Guild Mortgage. “We wanted to make homebuying more attainable for more people, including Millennials who are entering the housing market in increasing numbers.”
 
A recent study from the National Association of Realtors (NAR) estimates that Millennials represent 32 percent of all homebuyers and 68 percent of first-time homebuyers. However, Millennials can have trouble saving for a downpayment because of student loans, credit card debt and high rent costs, according to NAR.
 
“With the gift of a two percent grant, Guild is helping solve financing challenges for first-time and move-up buyers with low-to-moderate income,” said David Battany, executive vice president of Capital Markets at Guild. “Because this is a downpayment assistance program, there are income limits, required homebuyer classes and additional parameters. Income limits do not apply for properties in low-income census tracts.”
 
Here are key components of the Guild One Percent Down loan program:
 
►Non-borrower household income can be used to qualify
►Boarder income can be used to qualify
►Debt-to-Income ratio (DTI) up to 50 percent
 
“Guild’s one percent down loan program provides a unique option to low- and moderate-income homebuyers who are having a difficult time coming up with the downpayment,” said Battany. “We developed this program because of our history of working with first-time homebuyers for more than 50 years and what we saw as a need to fill a void in the market. Now, many homebuyers will be in a stronger position to afford a first home, or even upgrade to another home.”

 
Inventory Begins A Slow Recovery

Inventory grew 3.9% from April to May, according to Zillow's latest Market Report, after a year of steady decline.

Industry News
Jun 16, 2021
Mortgage Lenders Expect Profit Margins To Shrink

69% of lenders believe profit margins will decrease in the months ahead, while 19% believe profits will remain the same, and 11% believe profits will increase.

Industry News
Jun 14, 2021
Real Estate Industry Calls To End Eviction Moratorium On June 30, 2021

Expanding the moratorium will only increase levels of debt on renter households and impede the recovery of the housing sector.

Industry News
Jun 14, 2021
Fifth Third Bank Expands Down Payment Assistance Program

The program will provide up to $3,600 towards a down payment for families with low to moderate income.

Industry News
Jun 09, 2021
Filo Mortgage Launches Low-Rate Guarantee

National mortgage lender Filo Mortgage is offering to beat competitors' pricing by $1,000 with its Low-Rate Guarantee.

Industry News
Jun 08, 2021
FAU Index Shows Where Consumers Should Buy Or Rent

Consumers are better off renting in cities like Dallas, Texas

Industry News
Jun 07, 2021